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Company Formation · EU Member State

Set up a company in Lithuania.

A strategic Baltic location, a competitive tax regime, and one of Europe’s most active FinTech licensing environments — Lithuania is a credible EU base for businesses scaling into the single market.

15% Corporate Tax
5% Small Co. Rate
3-5 Days to Form
€2,500 Min. UAB Capital
Capital
Vilnius
Currency
Euro (€)
EU Status
Member (2004)
Language
Lithuanian
VAT Rate
21%
Eurozone
Yes (2015)
Quick Answer
How do you set up a company in Lithuania?

To set up a company in Lithuania, you choose a legal structure (most commonly a UAB — private limited liability company), prepare the Articles of Association, deposit the minimum share capital, and register with the Centre of Registers (Registrų Centras). You then obtain a tax identification number from the State Tax Inspectorate (VMI), register for VAT if applicable, and open a Lithuanian business bank account.

Standard formation takes 3 to 5 business days for a UAB. Minimum share capital is €2,500 (with at least €1,000 paid up at registration). Corporate income tax is 15%, with a reduced 5% rate for small companies and certain start-ups.

Grant & Graham manages the entire process — structure advice, registration, banking introductions, VAT, employment setup, and ongoing compliance — through a single senior point of contact.

Why Lithuania

Eight reasons businesses choose Lithuania.

A combination of EU access, FinTech infrastructure, a young technical workforce, and one of the most competitive tax regimes in the bloc.

01

Strategic Baltic location

A gateway between Northern Europe, Scandinavia, and the EU single market — with strong logistical links into Poland, Germany and the Nordics.

02

Competitive tax regime

15% standard corporate income tax, with a 5% reduced rate for qualifying small companies and start-ups, plus targeted R&D and IP-box incentives.

03

FinTech licensing hub

The Bank of Lithuania has issued more EMI and PI licences than any other EU regulator — with EU passporting and a fast, transparent application process.

04

Skilled, multilingual workforce

One of the most educated populations in the EU, strong English proficiency, and a deep technical talent pool in IT, engineering and shared services.

05

EU single market access

Full EU member since 2004 and Eurozone since 2015 — goods, services, capital and people move freely across all 27 member states.

06

Stable political & economic environment

NATO and EU member with consistent investment-grade sovereign ratings, transparent governance, and a long track record of pro-business policy.

07

Developed digital infrastructure

Among Europe’s fastest broadband and most accessible e-government services — supporting both remote founders and digital-first operating models.

08

Innovation & technology focus

Active government support for technology, life sciences and laser/photonics — with grant schemes, free economic zones, and EU structural funding.

Choose a Business Structure

Seven legal structures — one usually fits.

For most international businesses entering Lithuania, the UAB (private limited liability company) is the right starting point — equivalent to a UK Ltd or Dutch BV.

RECOMMENDED · LIMITED CO.

Private Limited Liability Company

Uždaroji akcinė bendrovė (UAB)

The standard structure for international businesses. Separate legal entity with limited liability. Minimum €2,500 share capital, at least one shareholder and one director. Equivalent to a UK Ltd.

PUBLIC LIMITED CO.

Public Limited Liability Company

Akcinė bendrovė (AB)

For larger businesses intending to issue publicly tradable shares. Minimum €25,000 share capital with mandatory supervisory board for certain sectors.

SOLE TRADER

Sole Proprietorship

Individuali įmonė (IĮ)

Single owner, no separate legal personality, full personal liability. Simple to register but rarely the right choice for international or multi-stakeholder businesses.

PARTNERSHIP

General Partnership

Tikroji ūkinė bendrija (TŪB)

Two or more partners with shared, unlimited joint and several liability. Used occasionally in professional services contexts.

PARTNERSHIP

Limited Partnership

Komanditinė ūkinė bendrija (KŪB)

At least one general partner with unlimited liability and one limited partner whose liability is capped at their contribution.

FOREIGN PRESENCE

Branch

Filialas

An operating branch of a foreign company. Not a separate legal entity — the parent retains full liability for the branch’s obligations.

FOREIGN PRESENCE

Representative Office

Atstovybė

Limited to marketing, liaison and promotional activities. Cannot trade or conduct commercial transactions in Lithuania.

NOT SURE?

Talk to us first

The right structure depends on your tax position, shareholders, financing plans and intended activity. A 25-minute call usually settles it.

Book a call →
Formation Process

From decision to live entity.

The end-to-end registration sequence for a Lithuanian UAB — managed by Grant & Graham, with senior oversight at every stage.

01

Reserve a company name

Confirm the proposed name is unique and meets Lithuanian naming regulations. Name reservation is filed with the Centre of Registers.

Centre of Registers (Registrų Centras) →
02

Prepare Articles of Association

Draft the company’s constitutional documents — including share structure, director appointments, registered office, and the company’s objects. For a UAB the documents are filed in Lithuanian.

03

Open a temporary bank account & deposit capital

Open an initial capital account at a Lithuanian bank and deposit the minimum share capital. For a UAB this is €2,500, with at least €1,000 paid up at registration.

04

Register with the Centre of Registers

Submit the incorporation documents online via the Centre of Registers portal. Pay the state registration fee. Standard turnaround is 3 to 5 business days.

Online Registration Portal →
05

Tax registration (TIN & VAT)

Obtain a Tax Identification Number from the State Tax Inspectorate (VMI). Register for VAT if turnover is expected to exceed the registration threshold or if you make qualifying intra-EU supplies.

State Tax Inspectorate (VMI) →
06

Operating bank account & banking onboarding

Convert the capital account into a fully operational business bank account — or open a parallel account with a Lithuanian FinTech / EMI partner. Grant & Graham coordinates introductions with our banking network.

07

Industry licences & permits

Check sector-specific licensing requirements — financial services, gaming, healthcare, regulated tech and food/beverage all carry additional approvals.

Invest Lithuania →
08

Employment registrations

Register with the State Social Insurance Fund Board (SODRA) before hiring. Draft compliant employment contracts and observe the State Labour Inspectorate’s health and safety guidelines.

SODRA →
09

Accounting, reporting & ongoing compliance

Set up bookkeeping aligned to Lithuanian accounting standards. Prepare annual financial statements, file annual tax returns with VMI, and maintain ultimate beneficial ownership (UBO) records.

Indicative Costs

What it costs to incorporate & run.

All figures are indicative and assume a standard UAB setup with one shareholder and one director. Final quotes vary by complexity, sector and ongoing support requirements.

One-time setup

Company registration (UAB)
€200–€400
Notary & legal documentation
€300–€600
Registered office (year 1)
€300–€500
Banking onboarding
€0–€300
G&G advisory & coordination
from €1,500
All-in setup: from €2,300–€3,300

Excludes the €2,500 minimum share capital (which remains your money in the business).

Ongoing monthly / annual

Accounting & bookkeeping
from €180/mo
VAT & tax compliance
from €120/mo
Registered office renewal
€300–€500/yr
Annual financial statements
from €500/yr
Advisory hours (as needed)
€250/hr
Typical monthly run-rate: from €300–€500

Scales with payroll, transaction volume and regulatory complexity. Retained advisory available.

Laws & Regulations

The legal framework to know.

A summary of the core legislation governing companies in Lithuania — we coordinate with senior Lithuanian counsel where specialist advice is needed.

Corporate Law

  • Law on Companies Akcinių bendrovių įstatymas
  • Civil Code Civilinis kodeksas

Tax Law

  • Law on Corporate Income Tax Pelno mokesčio įstatymas
  • VAT Law Pridėtinės vertės mokesčio įstatymas

Employment Law

  • Labour Code Darbo kodeksas
  • Law on Social Insurance Valstybinio socialinio draudimo įstatymas
  • Law on Occupational Safety & Health

Data Protection

  • Law on Legal Protection of Personal Data Asmens duomenų teisinės apsaugos įstatymas
  • EU GDPR (directly applicable)

Environmental Law

  • Law on Environmental Protection Aplinkos apsaugos įstatymas
  • Ministry of Environment regulations

Intellectual Property

  • Patent Law Patentų įstatymas
  • Trademark Law Prekių ženklų įstatymas
  • Copyright Law Autorių teisių įstatymas
Frequently Asked Questions

Lithuania, answered.

How long does it take to set up a company in Lithuania?
A standard UAB is typically incorporated within 3 to 5 business days from filing — assuming documents are correctly prepared and the capital has been deposited. Tax registration follows within a few days. End-to-end, including banking, allow 2 to 4 weeks.
What is the minimum share capital for a UAB?
The minimum authorised share capital for a UAB is €2,500, of which at least €1,000 must be paid up at the point of registration. The capital remains the company’s working capital — it is not a fee.
What is the corporate tax rate in Lithuania?
The standard corporate income tax rate is 15%. A reduced 5% rate applies to qualifying small companies (with up to 10 employees and turnover under €300,000). VAT is 21% on most goods and services, with reduced rates of 9% and 5% in specific categories.
Do I need to be a Lithuanian resident to set up a company?
No. There is no residency requirement for shareholders or directors of a UAB. Non-resident founders can incorporate remotely — we typically handle the process via power of attorney with Lithuanian-language notarisation.
Why is Lithuania a popular jurisdiction for FinTech?
The Bank of Lithuania has been the most active EU regulator for Electronic Money Institution (EMI) and Payment Institution (PI) licences over recent years — with a clear application path, shorter timelines than several other EU regulators, and full EU passporting once licensed. Lithuania is also an early adopter of regulatory sandboxes for FinTech.
What banking options are available?
Lithuania has a mix of traditional banks (SEB, Swedbank, Luminor, Citadele) and a strong FinTech / EMI sector. Most international clients open both a traditional bank account and an EMI / payment account — the EMI account is typically faster to onboard. Grant & Graham coordinates introductions across our banking network.
Do I need to register for VAT?
VAT registration is mandatory once taxable turnover exceeds €45,000 in any 12-month period. Voluntary earlier registration is common where the business will make intra-EU supplies or wishes to reclaim input VAT from setup costs.
What ongoing filings are required?
A Lithuanian UAB must file annual financial statements with the Centre of Registers, file annual corporate income tax returns with VMI, file monthly or quarterly VAT returns (if VAT-registered), maintain payroll and social security filings via SODRA, and maintain up-to-date ultimate beneficial owner (UBO) records.
Can Grant & Graham manage the whole process?
Yes. We handle structure advice, name reservation, document drafting (with Lithuanian counsel), capital account opening, registration filing, tax and VAT registration, banking introductions, and ongoing accounting and compliance — through a single senior point of contact. Indicative all-in setup from €2,300–€3,300.
What other EU jurisdictions should I compare Lithuania to?
Estonia (similar size, e-Residency, 0% retained earnings tax), Ireland (12.5% corporate tax, English-speaking, common law), the Netherlands (BV structure, strong holding regime), and Bulgaria (10% flat corporate tax) are the most common comparisons. We’ll help you weigh them against your specific tax, market and operational needs.
How We Work

Four steps from enquiry to live entity.

01 · CONSULT

Discovery call

30-minute conversation to understand your business, tax position, and what you actually need from the Lithuanian entity.

02 · SCOPE

Recommendation

Senior advisory on the right structure, share split, banking partners, VAT position, and ongoing compliance. Fixed quote.

03 · INCORPORATE

End-to-end formation

We handle registration, registered office, director appointments, capital deposit, banking introductions and tax registrations.

04 · OPERATE

Ongoing support

Optional retained support: accounting, VAT, payroll, annual filings, advisory hours and structural changes as you scale.

Start the Conversation

Ready to incorporate in Lithuania?

Tell us in 25 minutes what you need. We’ll tell you honestly whether Lithuania is the right jurisdiction — and if it is, we’ll handle the setup end-to-end.